Do you live in the Golden State and want to drive your car down the breathtaking scenic highways? You'll need to carry enough auto insurance to keep you and your passengers safe as you travel. There are several insurance options, such as basic and minimal coverage, but what is full-coverage car insurance in California?
Full coverage includes collision, comprehensive, and liability and helps cover a totaled vehicle so you can afford to buy a new or used car. Like most states, California has a minimum insurance requirement for all drivers to operate their vehicles legally. This requirement includes minimum amounts of bodily injury liability and property damage liability coverage.
Discover more about what each coverage includes, how much you need, and what California's "at-fault" system means for you. A solid understanding of your responsibilities as a driver in California will protect you on the road and in an accident.
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What's Included in Full-Coverage Insurance?
Full-coverage car insurance bundles several coverage types into one auto policy. These coverage types pay for damages to vehicles or property sustained in a car accident. They also cover medical expenses or hospital bills if you or others involved in the accident suffer injuries. The following coverages comprise a full-coverage car insurance policy:
Comprehensive Coverage
If someone steals or vandalizes your vehicle, comprehensive coverage pays for damages. This type of coverage also reimburses you for weather-related damage due to fire, floods, or hail and for a collision with an animal such as a deer.
For example, a tropical storm brings high winds to your area and causes a tree to fall on your car, smashing the windows and frame. You can file a claim on your comprehensive coverage to receive payment or reimbursement on your auto repair bills.
Collision Coverage
For help with the cost to repair your vehicle after an auto accident, collision coverage is essential. This insurance covers damage to your car in a collision with another vehicle or a stationary object such as a parking bollard or guardrail. If your vehicle is totaled from an accident you caused, your collision coverage will give you a payout for the car's actual cash value before the accident minus your deductible.
Liability Coverage
Liability car insurance consists of two types of coverage: bodily injury liability and property damage liability. Instead of paying for your expenses, these coverages pay others for the damage you caused. If you are at fault in an accident that injures the other driver and their passengers, bodily injury liability covers their medical expenses.
If the accident doesn't involve people but does damage someone's personal property, the property damage liability coverage kicks in to pay for those expenses. For example, if you accidentally back into someone's fence and knock out a few posts, they can file a claim against your property damage liability policy to receive payment for the repair costs.
Liability insurance also covers legal defense costs if someone sues you for an accident you caused. It is important to note that you will be responsible for paying the remaining amount if the expenses exceed your liability coverage limit.
Can You Add Extra Coverage to a Full-Coverage Policy?
Are you interested in obtaining additional insurance coverage to feel fully protected when you're on the road? You can add the following protections to your existing full-coverage car insurance for an extra fee.
Uninsured or Underinsured Motorist Protection
What do you do if someone hits your vehicle, causing significant damage, but they don't have car insurance? Or what if they do have insurance, but their policy limit is too low and can't cover your expenses? Unfortunately, this scenario does happen and can leave you in a financial bind. You may be stuck without a car if you can't cover the expenses of an accident someone else caused.
Fortunately, uninsured and underinsured motorist coverage protects you in these situations. Consider adding it to your full-coverage policy to receive payment if an underinsured or uninsured motorist damages your vehicle. This insurance can also cover your medical expenses if you are injured in the accident.
Medical Payments Coverage
For extensive health care coverage for you and your passengers, add medical payments to your auto policy. Regardless of who caused the accident, your and your passengers' medical bills are covered. These expenses include ambulance transportation, diagnostic x-rays, or surgeries needed to care for your injuries. With MedPay, you won't need to pay health insurance deductibles or co-pays related to doctor or hospital visits.
What Are the California State Requirements for Auto Insurance?
By law, California drivers are required to have auto liability insurance. You'll need to carry these minimum liability amounts on your auto policy to drive your car legally:
- Bodily injury liability insurance: $15,000 per person and $30,000 per accident.
- Property damage liability insurance: $5,000 per accident.
Consequences for Not Meeting the State's Minimum Requirements
If your vehicle is uninsured, the DMV can refuse to register it. They can prohibit you from operating it or parking it on public roadways until insured. If you don't comply with California's car insurance requirements, you risk paying several fines.
For example, if a police officer pulls you over while you're driving your uninsured vehicle, you may receive a citation with a fine of $100 to $200. Repeat offenders face higher fines of up to $500. If you rely on your vehicle to commute but can't afford full-coverage insurance, at least carry the state's minimum requirements to avoid these unnecessary charges.
What You Need to Know About California's "At-Fault" System
You may have heard of "no-fault" states that require drivers to carry personal injury protection insurance. This system provides payment regardless of who's at fault in an accident. California is not a "no-fault" state, meaning it does not require you to carry PIP coverage, nor is PIP available. Instead, California is an "at-fault" state.
What Does "At-Fault" Mean?
When drivers are "at-fault," they are legally liable for causing the auto accident. Because they are at fault, they are responsible for paying for the other driver's repairs and medical expenses. If you get into an accident that the other driver caused, you will file a claim against their insurance policy to receive payment for your damages or medical bills.
Another advantage to California's at-fault status is that you can sue the at-fault driver if they refuse to pay. In this case, you will file a lawsuit against them for compensation for any expenses they failed to cover.
Does This System Impact Full-Coverage Insurance?
Because California is an at-fault state, it is wise to choose full-coverage car insurance. Remember, if you are at fault for the accident, you are responsible for paying the other driver's expenses. The collision and liability insurance within the full-coverage policy offer financial protection. Your insurance provider will pay the other driver for any injuries or damages, depending on your coverage limits. That way, you can avoid being sued or paying out of pocket to reimburse the other driver.
How Much Does Full-Coverage Auto Insurance in California Cost?
The average cost for full-coverage auto insurance in California is around $2,475 per year or $206.25 per month. However, auto insurance rates vary depending on several factors, such as your age and location. Likewise, if you opt for the minimum insurance coverage, your annual premium will be much cheaper.
Are you looking to save money on car insurance? Explore the following factors to determine how much you'll pay and how to cut costs.
Factors That Determine Your Premium Rate
Car insurance companies use several factors to calculate how much you'll pay for your monthly premium. These factors include:
- Your zip code: Some locations are at higher risk for providers to insure, as they have higher rates of theft or auto accidents.
- Your age: Young drivers typically have more expensive insurance rates because of their driving inexperience and higher risk of causing accidents.
- Your driving record: The more traffic violations or negative marks on your driving record, the higher the premium you'll pay.
- Your gender: Male drivers may be more inclined to take risks while driving than female drivers.
Luckily, California is one of the few states that ban insurers from using a driver's gender to determine their insurance rate. According to the California Department of Insurance, this anti-discrimination law went into effect in January 2019.
California is also one of several states that prohibit insurance companies from using your credit score against you, via a law enacted in 2003. Typically, insurers use your credit score to calculate your premium, but you won't have to worry about this if you live in California. Instead, you can shift your focus toward improving a poor credit score.
Ways to Lower Your Car Insurance Premium
Insurance rates are different for every driver since their vehicles and driving history may vary. Still, there are effective ways to work with your insurance provider to lower your insurance premium.
Ask about Available Discounts
Some auto insurers offer a good driver's discount to help you save money if you maintain a clean driving record for a specified period. This discount is good news for drivers with a clean driving record of five years or more. Teen drivers who want cheaper auto insurance but face high rates because of their lack of driving experience may benefit from available student discounts. Most insurers offer this option for students with a B average or higher.
Some car insurance companies offer multi-policy discounts when you bundle insurance, such as homeowners or renters policies. If you have more than one car, you can get a multi-vehicle discount. Military, senior, and teen discounts may also be available through your insurer. Ask your insurance agent about which discounts you qualify for.
Downsize Your Vehicle
Another way to save money on insurance is to choose a cheap car to insure. Consider purchasing a small SUV or pickup truck, which typically get the lowest insurance rates. Avoid a more expensive car, such as a luxury convertible, because the repair and replacement costs are pricey, resulting in high insurance premiums.
Opt for Minimum Coverage
Is your current financial situation affecting your budget? You can opt for minimum liability coverage to meet the California requirements until your situation improves. Still, it may be wise to include collision and comprehensive insurance to avoid paying out of pocket for vehicle repairs.
Raise Your Deductible
You can also opt for a higher deductible to offset the cost of your monthly premium. The higher the deductible, the lower the insurance rate. While this may be a decent way to get cheaper insurance, it comes with some risks. If you do get into an accident, your insurer will expect you to pay the high deductible first. Then, they will offer payment or reimbursement for damages or repairs.
Best Car Insurance Companies in California
Looking for the best full-coverage car insurance in California? Compare quotes from various insurance providers to determine which one's right for you. GEICO offers affordable insurance for most drivers, but Progressive may help you get optimal rates despite your driving record if you're at high risk. USAA is ideal for the military, including active-duty, veterans, and their family members. Allstate may offer the best customer service because of its claim satisfaction guarantee.
Regardless, comparing quotes is the best way to find a good insurance rate that works with your financial situation. Some providers offer competitive pricing and are willing to lower your premium to match a competitor's rate. When shopping for the cheapest auto insurance, ask about available discounts. You may be eligible for a student, senior, military, or safe driver's discount, but you won't know unless you ask.
Consider full-coverage options when shopping for car insurance in California, as they offer greater protection for you and your passengers. Ultimately, you can customize your auto insurance policy with additional coverage such as roadside assistance or rental car reimbursement. Still, if you abide by California law and carry the minimum insurance requirement, you can drive with peace of mind, knowing you're protected.
Idalia Garcia is a licensed insurance agent with extensive knowledge of various insurance lines. She has more than 12 years of experience in auto insurance and 10 years in property insurance.
